InvestorsHub Logo
Followers 188
Posts 15268
Boards Moderated 1
Alias Born 06/15/2003

Re: None

Monday, 02/08/2016 2:22:25 PM

Monday, February 08, 2016 2:22:25 PM

Post# of 1467
Rock Band 4 Co-Publisher Mad Catz Sees CEO And Board Chairman Depart One Day Before Earnings Report
News

http://www.gameinformer.com/b/news/archive/2016/02/08/rock-band-4-co-publisher-mad-catz-sees-ceo-and-board-chairman-depart-one-day-before-earnings-report.aspx?utm_source=dlvr.it&utm_medium=twitter

by Mike Futter on February 08, 2016 at 01:10 PM
528 Views

Mad Catz will be announcing its third quarter earnings for the current fiscal year tomorrow. Today, the company has announced the departure of its CEO and Chairman.

Thomas Brown has resigned as Chairman and will be replaced by John Nyholt. Nyholt has been a member of the Board of Directors since October 2013.

CEO Darren Richardson has also tendered his resignation from his executive post and from the board. He is replaced by former chief financial officer Karen McGinnis.

Additionally, the company’s general counsel and corporate secretary Whitney Person has resigned. He is replaced by Tyson Marshall, who was previously associate general counsel.

Mad Catz bet on Rock Band 4, co-publishing with Harmonix and taking on the hardware distribution. The company’s earnings call will take place on February 9 at 5 p.m. Eastern.



Our Take
This is a major leadership turnover, and the timing hints that the gamble on Rock Band 4 and additional debt financing has not paid off. When we covered the company’s debt warning in July 2015, we indicated that Rock Band 4 needed to hit big with new hardware sales. This signals that the bet may not have paid off.


The company has been posting operating losses since 2011, with recovery slow. If that trend slipped back, the gamble very well could have cost top leadership their jobs.

Email the author Mike Futter, or follow on Google+, Twitter, and Game Informer.
Join InvestorsHub

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.